EUR/USD rises to test daily highs

EUR/USD bottomed at 1.1239 but then bounced to the upside and climbed to 1.1277

EUR/USD bottomed at 1.1239 but then bounced to the upside and climbed to 1.1277, just one pip below the daily high. The pair remains on top of the 20-hour moving average that is acting as a relevant intraday support at 1.1260, holding a bullish tone.

The euro remains near multi-month highs versus the US dollar. The greenback is suffering from a rally in Treasuries that pushed the 10-year yield 2.134%, the lowest since November. The Dollar Index dropped to 96.50, the lowest in almost seven months.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet point out that the 4-hour chart shows the price hovering around the 20-SMA, with technical indicators holding in positive territory, with no clear directional strength, indicating the risks remain tilted to the upside.

“As long as the price holds above the 1.1200 region, the downside will be well-limited, although a break through the 1.1300 resistance is now required to confirm a bullish acceleration for the upcoming sessions”, concluded Bednarik.

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